China-based electric vehicle maker BYD (BYDDY) reported significant year-over-year growth of 204.7% in earnings for the first half of 2023, driven by strong deliveries. The company’s net profit rose to RMB10.95 billion ($1.50 billion) from RMB3.59 billion in the year-ago period. Importantly, revenue in the January-June period surged 72.7% to RMB260.1 billion.
Moreover, deliveries in the first six months jumped about 95% year-over-year to 1.2 million vehicles. The quarter gained from robust sales of the Dynasty and Ocean series of plug-in hybrids and fully electric cars, respectively.
It is worth mentioning that China’s top-selling EV company expanded its market share by 6.5% to 33.5% in the first half of 2023.
Nevertheless, BYD continues to face competition from Tesla (TSLA) and remains under pressure to lower its pricing. This is due to TSLA’s ongoing price cuts, with the latest announced in mid-August on Model S and Model X models.
Moving forward, BYD is expected to benefit from its efforts to expand its EV and battery production capacities. The company’s new plants in China and an EV factory in Thailand are expected to begin operations in 2024. Moreover, these actions are expected to help BYDDY reach its goal of 3.6 million annual deliveries. BYDDY shares have gained about 14% year-to-date.
